Closing 2022 on a high, the Winnipeg industrial market’s leasing activity remained strong with significant under-construction and planned industrial developments in the pipeline. These under-construction developments are concentrated mainly in the Northwest market, which currently makes up 90% of such projects.
- The vacancy rate decreased to yet another all-time low of 1.3%, down from 1.5% the previous quarter. In Q3, the East quadrant of the city had one of the lowest vacancies at 0.9%. With an additional new supply of 45,000 square feet, the vacancy rate slightly increased to 1.1% in Q4. Regardless of the new supply, the East market’s vacancy rate remains the lowest in the Greater Winnipeg industrial market.
- The continuous decrease in vacancy has continued to place upward pressure on asking net rental rates across all industrial asset sizes. The fourth quarter saw a 28.8% year-over-year increase in asking
rent to $10.18 per square foot. This can be attributed to the low vacancies leading to fewer available options for lease, resulting in older industrial products charging similar rental rates to newly constructed buildings.